Reasons to incorporate your business

Here are some reasons you may want to consider incorporating your growing business.

Protect your personal assets from creditors. When you operate your business within a corporation, creditors are often limited to corporate assets to satisfy a debt. Your home, savings, and retirement accounts are no longer fair game.

Provide a personal liability firewall. The corporate form can help protect you against claims made by others for injuries or losses arising from actions of your business. [Read more…]

4 tips to landing your dream home in a seller’s market

Here are some suggestions to landing your dream home in our current real estate market.

  1. Be nimble, be flexible. Try to investigate new listings quickly – within hours of their first posting, if possible. If you’re interested in a house but an inspection finds a few flaws, you may have to be flexible about accepting a house with a few quirks or in need of some repairs.
  2. Make a strong offer. A seller’s market isn’t a time to lowball your first offer on a house you want. If you’ve prepared and set your expectations below your minimum price range, you should be able to make a strong offer to ensure you are among the most attractive bidders. You shouldn’t wildly overpay, but making a strategic offer above the listing price may sweeten the deal enough to close quickly. [Read more…]

Keep your audit fears in check

Getting audited by the IRS is no fun. However, your chances of being audited are probably lower than you think. A look at the latest IRS statistics for 2016 reveals some interesting and reassuring facts about the risk of an IRS audit.

Audits are becoming less common. The number of individual tax returns the IRS audited fell to a 12-year low last year, to just above 1 million. Audits have been steeply declining over the last five years, which the IRS commissioner said was due in part to declining budgets and a smaller workforce.

Audits target the rich. It’s a fact: IRS audits target the super-rich. The statistical chance of being audited increases dramatically for people of higher income levels. [Read more…]

Tax deadlines for June

June 15

  • Second quarterly installment 2017 individual estimated tax due
  • Second quarterly installment 2017 estimated tax for calendar-year corporations due
  • Individual tax filing deadline for U.S. citizens living or serving in the military overseas

Do I have to show how I’ve spent my child-support payments?

The popular rap artist T.I. has had his share of run-ins with the law. But he’s also recently gone to court voluntarily to protect his own interests. When his ex-girlfriend, with whom he had two sons, sought to increase his child-support obligations from $2,000 to $3,000 a month, T.I. went to court to challenge this, arguing that she was spending the money on herself rather than on the kids. He demanded an accounting of how she was spending the money.

T.I. isn’t alone. Many non-custodial parents are suspicious about how the other parent is using their child-support payments and would like similar accountings. So are they entitled to it?

In many states, they’re not. But some states do make provisions for such accountings in particular circumstances. [Read more…]

Ex-wife can’t touch husband’s interest in ‘spendthrift trust’

An “irrevocable spendthrift trust” is a popular vehicle for parents to pass along wealth to their kids while protecting the trust’s assets from their kids’ worst instincts.

Here’s how it works. The parent sets up a trust and names the child or children as beneficiaries. The trust document also includes language stating that if one of the beneficiaries owes someone money, that creditor can’t touch the assets in the trust before they’ve been distributed. And the person named as “trustee” is in charge of these distributions.

Once a beneficiary has received a distribution from the trust, creditors can go after that money, but only money in excess of what the beneficiary needs to support him or herself. [Read more…]

Plan ahead for bringing a new spouse home from abroad

Traveling or working abroad can be very exciting. You get to experience new cultures, see new places and meet fascinating new people. In fact, you might just fall in love and decide you want to bring this special someone back to the U.S. and spend the rest of your lives together.

Congratulations and best wishes for a wonderful future! But remember that this could be a recipe for heartache and disappointment if you don’t follow some necessary steps along the way. That’s because returning to the U.S. with a non-citizen spouse isn’t necessarily as simple as you think and takes advance planning. Otherwise you may arrive in America ready to live as a family, only to have immigration officials block your spouse from coming in.

So what do you have to do? [Read more…]

Undoing your divorce: What happens when you have regrets?

A lot of times after a divorce agreement is finalized spouses may have misgivings. Not necessarily about being divorced, but about the divorce agreement itself. Hindsight is 20/20, and they might feel they got a raw deal and could have walked away with a lot more. So if you’re unhappy with your divorce agreement, can you undo it?

Generally the answer is “No.” In most states, courts won’t revisit judgments lightly.

Still, there are a few situations where a court may decide to give a divorce judgment a second look. [Read more…]

Courts expanding definition of ‘parent’ to recognize ‘de facto’ parenthood

Traditionally who was a parent was pretty clear-cut. If a child was yours biologically or if you adopted him or her, you were considered a parent. That would give you the right to seek custody and visitation if you and the other parent were no longer living in the same home.

But just as traditional notions of “family” have evolved in recent years, so have traditional notions of who a parent is. Two recent court decisions make this clear. Both decisions appear to recognize the idea of a “de facto” parent: a non-adoptive, non-biological caretaker who has earned parental status through the bond he or she has developed with a child and who deserves to be viewed on equal legal footing with the biological parent. And while both decisions involve same-sex couples, the reasoning behind them could extend to any non-adoptive, non-biological “parent.”

The first case is from Maryland and involved Michael Conover, a transgender man (a person who was born biologically female but identifies and lives as a male) who married a woman before undergoing gender transition. Before his transition, he and his wife, Brittany Conover, lived as a same-sex couple. [Read more…]

Realtors survey: First-time home-buying is down

In reviewing 35 years of survey data on home buyers and sellers, the National Association of Realtors (NAR) announced five notable real estate trends.

The organization’s survey, called Profile of Home Buyers and Sellers, dates back to 1981 and is the longest-running series of national housing data evaluating the demographics, preferences, motivations, plans and experiences of home buyers and sellers.

Here are the key takeaways over the past 3 ½ decades: [Read more…]